SOUTHPORT, Conn.--(BUSINESS WIRE)-- Sturm, Ruger & Company, Inc. (NYSE-RGR) announced today that for the second quarter of 2013 the Company reported net sales of $179.5 million and fully diluted earnings of $1.63 per share, compared with net sales of $119.6 million and fully diluted earnings of 91¢ per share in the second quarter of 2012.

For the six months ended June 29, 2013, net sales were $335.4 million and fully diluted earnings were $2.83 per share. For the corresponding period in 2012, net sales were $231.9 million and fully diluted earnings were $1.71 per share.

The Company also announced today that its Board of Directors declared a dividend of 65¢ per share for the second quarter, for shareholders of record as of August 16, 2013, payable on August 30, 2013. This dividend varies every quarter because the Company pays a percent of earnings rather than a fixed amount per share. This dividend is approximately 40% of net income.

Chief Executive Officer Michael O. Fifer made the following observations related to the Company's results:

Our earnings increased 79% from the second quarter of 2012, driven by the 50% growth in sales and our ongoing focus on continuous improvement in our operations.

New product introductions were a significant component of our sales growth as new product sales represented $102.7 million or 31% of firearm sales in the first half of 2013. New product introductions in the first half of 2013 included the LC380 pistol and the SR45 pistol.

During the second quarter and first half of 2013, the estimated unit sell-through of our products from the independent distributors to retailers increased 37% and 23% from the comparable prior year periods. Insufficient distributor inventory at December 31, 2012 severely limited the estimated sell-through from independent distributors to retailers in the first half of 2013. For the same periods, National Instant Criminal Background Check System ("NICS") background checks (as adjusted by the National Shooting Sports Foundation) increased 16% and 33%, respectively.

Cash generated from operations during the six months ended June 29, 2013 was $69.8 million. At June 29, 2013, our cash totaled $64.8 million. Our current ratio is 1.8 to 1 and we have no debt.

In the first half of 2013, capital expenditures totaled $18.8 million, much of it related to new products and the expansion of production capacity. We expect to invest approximately $35 million on capital expenditures during 2013.

In the first half of 2013, the Company returned $17.3 million to its shareholders through the payment of dividends.

At June 29, 2013, stockholders' equity was $135.8 million, which equates to a book value of $7.02 per share, of which $3.35 per share was cash and equivalents.

Today, the Company filed its Quarterly Report on Form 10-Q for the second quarter of 2013. The financial statements included in this Quarterly Report on Form 10-Q are attached to this press release.

Tomorrow, August 1, 2013, Sturm, Ruger will host a webcast at 9:00 a.m. EDT to discuss the second quarter operating results. Interested parties can access the webcast at www.ruger.com/corporateor www.earnings.com or by dialing 866-825-1709, participant code 14272752.

The Quarterly Report on Form 10-Q is available on the SEC website at www.sec.gov and the Ruger website at www.ruger.com/corporate. Investors are urged to read the complete Quarterly Report on Form 10-Q to ensure that they have adequate information to make informed investment judgments.

About Sturm, Ruger

Sturm, Ruger & Co., Inc. is one of the nation's leading manufacturers of rugged, reliable firearms for the commercial sporting market. The only full-line manufacturer of American-made firearms, Ruger offers consumers over 400 variations of more than 30 product lines. For more than 60 years, Ruger has been a model of corporate and community responsibility. Our motto, "Arms Makers for Responsible Citizens," echoes the importance of these principles as we work hard to deliver quality and innovative firearms.

The Company may, from time to time, make forward-looking statements and projections concerning future expectations.Such statements are based on current expectations and are subject to certain qualifying risks and uncertainties, such as market demand, sales levels of firearms, anticipated castings sales and earnings, the need for external financing for operations or capital expenditures, the results of pending litigation against the Company, the impact of future firearms control and environmental legislation, and accounting estimates, any one or more of which could cause actual results to differ materially from those projected.Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made.The Company undertakes no obligation to publish revised forward-looking statements to reflect events or circumstances after the date such forward-looking statements are made or to reflect the occurrence of subsequent unanticipated events.

STURM, RUGER & COMPANY, INC.

CONDENSED BALANCE SHEETS

(Dollars in thousands)

June 29,

2013

December 31,

2012

Assets

Current Assets

Cash

$

64,781

$

30,978

Trade receivables, net

57,344

43,018

Gross inventories

56,153

55,827

Less LIFO reserve

(38,631

)

(38,089

)

Less excess and obsolescence reserve

(1,468

)

(1,729

)

Net inventories

16,054

16,009

Deferred income taxes

7,508

5,284

Prepaid expenses and other current assets

693

1,632

Total Current Assets

146,380

96,921

Property, plant and equipment

214,369

195,713

Less allowances for depreciation

(138,570

)

(129,720

)

Net property, plant and equipment

75,799

65,993

Deferred income taxes

2,471

2,004

Other assets

11,893

9,568

Total Assets

$

236,543

$

174,486

STURM, RUGER & COMPANY, INC.

CONDENSED BALANCE SHEETS (Continued)

(Dollars in thousands, except share data)

June 29,

2013

December 31,

2012

Liabilities and Stockholders' Equity

Current Liabilities

Trade accounts payable and accrued expenses

$ 44,033

$ 38,500

Product liability

989

720

Employee compensation and benefits

26,701

15,182

Workers' compensation

4,550

4,600

Income taxes payable

6,123

489

Total Current Liabilities

82,396

59,491

Accrued pension liability

18,136

19,626

Product liability

238

337

Contingent liabilities

--

--

Stockholders' Equity

Common Stock, non-voting, par value $1:

Authorized shares 50,000; none issued

--

--

Common Stock, par value $1:

Authorized shares - 40,000,000

2013 - 23,640,804 issued,

19,341,370 outstanding

2012 - 23,562,422 issued,

19,262,988 outstanding

23,641

23,563

Additional paid-in capital

18,108

15,531

Retained earnings

161,528

123,442

Less: Treasury stock - at cost

2013 and 2012 - 4,299,434 shares

(37,884)

(37,884)

Accumulated other comprehensive loss

(29,620)

(29,620)

Total Stockholders' Equity

135,773

95,032

Total Liabilities and Stockholders' Equity

$236,543

$174,486

STURM, RUGER & COMPANY, INC.

CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED)

(Dollars in thousands, except per share data)

Three Months Ended

Six Months Ended

June 29,

2013

June 30,

2012

June 29,

2013

June 30,

2012

Net firearms sales

$

176,787

$

118,147

$

330,227

$

228,934

Net castings sales

2,741

1,422

5,207

2,972

Total net sales

179,528

119,569

335,434

231,906

Cost of products sold

108,804

74,435

203,401

144,979

Gross profit

70,724

45,134

132,033

86,927

Operating expenses:

Selling

11,823

9,107

27,588

20,107

General and administrative

8,317

7,526

16,760

13,904

Other operating expenses (income), net

(168

)

189

(238

)

190

Total operating expenses

19,972

16,822

44,110

34,201

Operating income

50,752

28,312

87,923

52,726

Other income:

Interest expense, net

(39

)

(21

)

(55

)

(44

)

Other income, net

166

303

361

483

Total other income, net

127

282

306

439

Income before income taxes

50,879

28,594

88,229

53,165

Income taxes

18,571

10,580

32,203

19,671

Net income and comprehensive income

$

32,308

$

18,014

$

56,026

$

33,494

Basic earnings per share

$

1.67

$

0.94

$

2.90

$

1.75

Fully diluted earnings per share

$

1.63

$

0.91

$

2.83

$

1.71

Cash dividends per share

$

0.490

$

0.324

$

0.894

$

0.536

STURM, RUGER & COMPANY, INC.

CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Dollars in thousands)

Six Months Ended

June 29,

2013

June 30,

2012

Operating Activities

Net income

$

56,026

$

33,494

Adjustments to reconcile net income to cash provided by operating activities: